Kingfisher Net Positive Report 2013/14 - In store, in business
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Kingfisher Net Positive Report 2013/14
In store, in business
CONTENTS
2 From our Group Chief Executive
3 From our Group Sustainability Director
4 Sustainability and our business
6 What is Net Positive?
8 In store
14 In business
20 Performance Summary 2013/14
22 Timber
27 Energy
32 Innovation
36 Communities
39 People
44 Suppliers and partners
47 Environment
52 From our operating companies
56 Governance and management
61 About our reporting
63 Operating Company Performance Summary
Castorama France Castorama Poland Brico Dépôt France
B&Q UK & Ireland Castorama stores Castorama is the Brico Dépôt is primarily
B&Q is the largest B&Q China offer everything that’s market leader in Poland, Castorama Russia aimed at serious DIYers
home improvement and B&Q China is needed to make a better which has a large, Castorama Russia and professional
garden centre retailer adapted to the local home and garden. The mostly home-owning is tapping into a builders. It is a low-
in the UK and Ireland, preference for a stores are aimed at the population with good home improvement price format that offers
offering products for the ‘Do-it-for-Me’ model, mainstream consumer DIY skills. Castorama market that has grown customers a wide range
homemaker, occasional specialising in fitting and have a growing stores are particularly quickly along with the of DIY and renovation
to serious DIYers and out and decorating new emphasis on style and strong in ‘harder’ DIY disposable income of products available in
trade professionals. apartments. inspiration. products. Russia’s middle class. ‘building site quantities’.
360 39 105 72 20 109
Stores Stores Stores Stores Stores Stores
40,000+ 19,000 50,000 34,000 25,000 11,000
Products Products Products Products Products Products
21,146 3,997 11,322 10,197 2,648 6,875
Employees Employees Employees Employees Employees Employees
Kingfisher Net Positive Report 2013/14
INTRODUCTION
WELCOME
Kingfisher is Europe’s largest home improvement
retailer with over 1,120 stores in nine countries.
We employ 79,0001 people and nearly six million
customers shop in our stores every week.
Net Positive is our ambition to make a positive
contribution to people and the planet, while
growing a stronger and more successful business.
This report summarises progress in our first full
year since we launched Net Positive.
Screwfix
Screwfix is the UK’s
largest direct and
Brico Dépôt Spain online supplier of trade
Brico Dépôt expanded tools, accessories and Koctas
Brico Dépôt Romania2
into Spain in 2003. The hardware products to Koçtaş, Kingfisher’s
Kingfisher acquired
Spanish stores are tradesmen, handymen joint venture in Turkey,
Bricostore’s 15 home
based on the highly and serious DIY is now the number one
improvement stores
successful Brico Dépôt enthusiasts all over home improvement
in Romania in 2013.
format in France. the UK. retailer in the country.
The stores are being
24 335 45 converted into the Brico
Stores Stores Stores Dépôt format.
1
Operating Company employee numbers are for
12,500 18,000 25,000 15 full-time equivalent employees as at 1 February
Products Products Products Stores 2014. The total Group headcount figure is 79,000.
1,371 4,375 3,333 1,037 2
Brico Dépôt Romania was purchased during the
Employees Employees Employees Employees year and is not included in the scope for this report.
1
Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
FROM OUR GROUP
CHIEF EXECUTIVE
In the first year since we growing global middle class it Director who reports directly
launched Net Positive we have is obvious to us that business to me, the roll-out of our One
made steady progress, laying as usual is no longer an option. Academy executive engagement
the groundwork for tackling If we don’t act now to address module on Net Positive and
some of the big challenges challenges like this, we face a the integration of Net Positive
we face in transforming future of increased costs, social objectives into our performance
our business to become instability and threats to our management systems. Reflecting
restorative. supply chain. our commitment to human
Net Positive is our response to The good news is that by taking rights, anti-corruption and
an uncertain future, one that a restorative approach, putting environmental protection, we
looks set to be increasingly back more than we take out, we have become a signatory to
dominated by resource scarcity, will create positive change for the UN’s Global Compact, the
social inequality and global people and the environment, and first major company in the UK’s
climate change. a stronger and more resilient general retail sector to do so.
What we’ve learnt in At Kingfisher we have long business too. We will be better Our business has always been a
our first year is that recognised our reliance on the placed to compete, to connect source of growth and innovation.
our challenge is the planet’s natural capital. For with customers and to innovate. Now, by thinking differently
right one but that example, we know that with Taking just one example – we can unlock our creativity to
through our work on closed-loop create even more value for our
business ‘unusual’ around 40% of our products
innovation we are developing investors, colleagues, customers
containing paper or wood, we
isn’t easy. cannot afford to see a continued new sources of revenue and raw and society. What we’ve learnt
decline in the world’s forests. materials that will enable us to in our first year is that our
Sir Ian Cheshire
We’re already feeling the effects create the products and services challenge is the right one but that
Group Chief Executive our customers need at the price business ‘unusual’ isn’t easy.
of a changing climate with
extreme weather events and they expect, even in an era of Becoming a restorative business
flooding costing our business. rising resource prices. necessitates transformative
With further pressure on natural To seize this opportunity we are change management, engaging
resources expected from a starting to redesign our business hearts and minds at every level
focusing on new product of the business. We’ve begun
innovation and collaboration with that journey and are pleased
our supply chain. We have also to share the results so far with
taken steps to further embed you through this report. Now, to
Net Positive into our business reach our targets and aspirations
model (see page 5) through, we’ve got to go further, more
for example, the appointment quickly. I’m confident we can
of our Group Sustainability achieve this acceleration and I
look forward to updating you on
our progress next year.
2
Kingfisher Net Positive Report 2013/14
FROM OUR GROUP
SUSTAINABILITY DIRECTOR
Net Positive is about having a and our suppliers. Successful These early examples are
positive impact on people and examples include B&Q UK’s inspiring and show us that
the planet while also creating revolutionary new easyGrow change is not just the right thing
value for our business. We are bedding plants that are set to to do but beneficial, both for our
already starting to see what eliminate peat and polystyrene, business and our customers.
this can mean in practice, and and Castorama France’s However, the pace of change
identifying where we must Infinite 100% recycled kitchen is not fast enough and while we
go further to truly realise the worktop made from our own are generating new sources of
commercial, environmental business waste. revenue from Net Positive, such
and social benefits. On energy, we have expanded as the £0.5 billion in sales of our
To succeed with Net Positive, our energy-saving product most innovative eco-products,
we need to take a systemic ranges and services, making it we’re still only scratching the
and integrated approach to easier for customers to reduce surface of the commercial
sustainability, one that is energy use and saving them an benefits that Net Positive
To succeed with Net rooted in our business model. estimated £450 million a year on can bring.
Positive we need to Since joining in 2013, my role their energy bills. We engaged In the year ahead we will be
take a systemic and has been to help make this with thousands of customers, focused on further embedding
integrated approach transformation possible, to through DIY classes run at Net Positive into our Operating
make sure that sustainability our stores and our other Companies, strengthening
to sustainability that is meaningful to our people community projects. our systems and governance
is rooted in our and to give our companies the Behind the scenes we have structures and accelerating
business model. information, tools and inspiration saved £30 million for the progress by making sure that
they need to transform how business over three years what we do is truly relevant to
Richard Gillies they work. Significant progress our customers and employees
through reducing energy use
Group Sustainability Director has been made this year in at the local level. We will take
and waste. We launched our
building systems and capacity, closed-loop calculator that will what we’ve learnt from our early
establishing the tools and help us measure and improve the successes and start working
measurement systems we closed-loop credentials of our with our partners to apply these
need to help us progress while product ranges, and measured lessons at scale across our
also investing in innovation our carbon footprint across our business and stimulate further
and experimenting with value chain to help us target innovation. We have much to do
new approaches. further reductions. The launch of to reach our 2020 targets but I
Closed-loop innovation, our Net Positive Advisory Council believe we are in good shape to
for example, offers a major and the three ‘Conversations’ we make the changes we need to
business opportunity by enabling held with expert stakeholders, get us there.
us to access new sources of challenged our thinking and
raw materials and to design out provided us with new insights
waste. We began to explore that are being put to use within
opportunities during 2013/14, the business.
working with partners such as
the Ellen MacArthur Foundation
3
Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
SUSTAINABILITY
AND OUR BUSINESS
Our business purpose is to help
customers have Better Homes, Better OUR CREATING THE LEADER STRATEGY
Lives. We provide the products and
services our customers need to improve
their homes, while creating jobs and
generating returns for our investors and
value for society.
We have a long-standing commitment to
sustainable business and progressively
we are harnessing our home improvement
Easier Common Expand
expertise, sourcing network and our
sustainability heritage to bring innovative,
affordable and more sustainable products
to market.
OUR BUSINESS MODEL
We seek to maximise our cash generation
1 Making 3 Building 5 Growing
in a responsible way, maximising sales
and minimising costs while observing key it easier innovative our
behaviours – responsibility, honesty, passion, for customers to common brands presence in
openness and adaptability. Our strategy improve their home existing markets
for delivering business growth is known as
2Giving 4Driving 6Expanding
Creating the Leader, and Net Positive is an our efficiency in new
integral part of this.
customers more and effectiveness and developing
– Maximising sales ways to shop everywhere markets
home improvement is an attractive retail
sector and we aim to provide a wide product
choice and expert advice while using our
international strength and capability to bring
new, more sustainable and more affordable
products to market. We are launching new
products and services in areas such as ENABLED BY
energy efficiency that move us towards
our Net Positive goals while creating new Developing
revenue streams. leaders and
– Minimising costs
connecting people
the biggest cost in our business is buying
the products that we sell to our customers. Sustainability:
We aim to minimise costs through giving becoming ‘Net
suppliers the certainty of large-scale Positive’
orders and through running our stores
and distribution networks more efficiently.
Through our focus on sustainability, we are
designing out waste and exploring closed-
loop approaches that give us access to
new materials streams and help protect our
business from price volatility.
– Cash and value generated
we have generated £5.5 billion of operating
cash flow over the last six years, reinvested
£1.7 billion in the business and returned
£1 billion to shareholders as annual dividends.
The value we create for customers and
society gives us better brand preference and
licence to operate over the longer term.
4
Kingfisher Net Positive Report 2013/14
OUR BUSINESS
MODEL
Customers People
DIY, DFM, Recruitment,
Trade retention,
professionals training,
development,
diversity
Products Channels
Innovation, Stores,
affordability, online, mobile,
quality, own call centres,
brands, catalogues,
Strategy: Creating the Leader sourcing, direct
sustainability
Improve, modernise and expand
for long-term success and to Maximising
become Net Positive sales
BETTER HOMES,
BETTER LIVES
Minimising
costs
Value for the business:
Sourcing,
Brand preference
cost
Cash retained for a strong
productivity
balance sheet
‘Licence to operate’ long term
Value
Value for society: Value for shareholders: Value for customers:
Creating employment and a Healthy annual dividend and Relevant, better, sustainable
brighter future for our people, commitment to return surplus and affordable products
the environment and wider capital when appropriate and services
communities
Creating a ‘licence to operate’ long term Creating brand preference
To view and download the business model go to
http://annualreport.kingfisher.com/2013-14/strategic-report/our-business-model.html
5
Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
WHAT IS
NET POSITIVE?
Net Positive is a restorative approach to business.
It means making a positive contribution to people
and the environment, while growing a stronger,
more profitable business.
With Net Positive, we aim to:
• Have a positive impact on people and communities
• Be restorative to the environment
• Become carbon positive
• Waste nothing
• Create wealth
BECOMING NET
POSITIVE
VISION VISION
Global net reforestation All homes are zero carbon
or net generators of energy
ASPIRATION
Kingfisher creates more forest ASPIRATION
than it uses Every Kingfisher store and customer’s
home is zero carbon or generates more
2020 TARGET
energy than it consumes
100% responsibly sourced
timber and paper in all our operations 2020 TARGETS
38TWh of energy saved for customers
45% reduction in energy intensity
of our property
TIMBER ENERGY
VISION VISION
Creating and using products wastes nothing Businesses help people to help each other
ASPIRATION ASPIRATION
Every Kingfisher product will enable Every Kingfisher store and location
a more sustainable and ultimately supports projects which build local
Net Positive lifestyle communities or equip people with skills
2020 TARGET 2020 TARGET
1,000 Kingfisher products 4,000 community projects completed
with closed-loop credentials by our people that deliver ‘Better Homes,
Better Lives’
INNOVATION COMMUNITIES
6
FOUNDATIONS:
EMPLOYEES, SUPPLIERS, ENVIRONMENT
Kingfisher Net Positive Report 2013/14
To become Net Positive we Our opportunity Our priorities
must transform many aspects Net Positive is how we will We have identified four priorities
of our business, redesign our transform our business to be for our Group, areas that are
stores and products, find new better prepared to respond to, closely connected with our
ways to serve our customers and capitalise on, global social business and where we can make
and forge new partnerships and environmental megatrends. a big difference: timber, energy,
and supply chains. It is both a response to the innovation and communities.
challenges we face and a We have established a clear
Why we need Net Positive
plan for how we will seize new vision in each area and set
The world faces unprecedented
opportunities that come with targets for 2020 to help us begin
social and environmental
more sustainable business making progress. Transforming
challenges, such as the growing
practices. For example, it will our business to become Net
pressure on natural resources
equip us to take advantage of Positive is a challenging task, but
from an expanding global middle
the predicted €70 billion new by focusing our efforts on these
class, to the impact of global
market for in-home energy priorities and setting clear targets
climate change and increasing
efficiency across Europe by we can make more progress more
inequality.
2020. Through our focus on quickly. This report summarises
These trends are reshaping closed-loop innovation we will progress towards these targets in
the business environment, with open up new sources of raw our first year.
the potential to increase our materials and foster productive
costs, restrict our access to partnerships with our supply
resources and create instability chain. Responsible timber
in our global supply chains. For sourcing and forest projects will
example, timber is used in up help us safeguard the supplies
to 40% of our products making of timber we need to grow our
it an essential raw material business. Above all, Net Positive
for our business. We could be will help us to create better,
significantly affected by predicted more affordable and sustainable Net Positive
price rises of up to 75% and products that our customers want Our business has a Net Positive
timber shortages of up to 30% and need. effect in the areas of the four pillars.
by 2020, resulting from growing By changing these, we expect to
demand and deforestation. have learnt how to make our entire
business Net Positive.
Between 2000 and 2010, about
5.2 million hectares of forest Net Positive tipping point
Shifting the balance from projects 2036 – 2050
were lost each year. To protect
these vital resources over the that plot a Net Positive approach NET POSITIVE
to a business where Net Positive
longer term, we need to go
drives our decisions and actions. The
further than just replacing what majority of new initiatives in the four
we use ourselves. pillars have a Net Positive impact,
Pioneering Net Positive projects with exceptions only where it is
Rethinking four key pillars within our technically or financially unfeasible.
business model where we can have
the biggest impact: timber, energy, 2021 – 2035
innovation and communities. Our POSITIVE BALANCE
focus is on pioneering initiatives that
will help us in becoming Net Positive
in these areas or making a substantial
step towards it. Continuing to deliver
leadership in reducing our impact
elsewhere.
2012 – 2020
POSITIVE IMPACT
Conventional approach to date
Reducing the environmental and
social impact of our operations, and
helping our customers to do the same
in their homes through our products
and services.
IMPACT
2000 – 2011
FUTURE HOMES
NET POSITIVE
THRESHOLD
7
2000 TIME 2050
Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
INSTORE
Net Positive is already happening in our stores.
With our suppliers we are developing new
products that are better for the environment
and make life easier for our customers, helping
them to create homes that are more efficient,
more comfortable and less wasteful.
Products with improved HIGH PERFORMANCE
sustainability credentials are only
‘better’ if they also meet or exceed
MATERIALS WITH A
LOWER IMPACT Harnessing Teabag Customer benefits:
our customers’ expectations for Technology for • Easy to use with less mess
quality, value and functionality. We are redesigning some of our easier gardening
This ensures that our customers • Protects plant roots
most important products, finding Each Spring B&Q UK sells
will choose them in-store and new and more sustainable • Container can be recycled
more than 80 million bedding
continue to use them when they with household waste
materials to use and eliminating plants, previously creating
get home. That’s why in all our waste. Much of our work is enough polystyrene waste Sustainability benefits:
product innovation we always inspired by the opportunity of to stretch from Land’s End to • 95% peat-free with better
prioritise customer benefits. closed-loop innovation, the John O’Groats. Now it has water retention
Creating Net Positive products continual reuse, repurposing and developed easyGrow, an • Recyclable PET replaces
requires us to rethink design, recycling of raw materials. innovative approach to bedding polystyrene reducing waste
to source materials from more While it may take many years plants and their packaging that to landfill
sustainable sources, to develop to produce our first completely is 100% recyclable and better • 750 jobs created in our
new types of materials that closed-loop supply chain or for gardeners and nature. With Sri Lankan coir supply chain
minimise waste and even to product range, we can have easyGrow, bedding plants • Significantly fewer lorries
rethink traditional business a big impact at this stage by come in individual ‘tea bags’ needed to transport
models, moving from selling making more of our products planted in sustainable coir
physical products to exploring how more closed-loop, including that is 95% peat‑free. They
we deliver the same customer through the use of recycled can be lifted straight into the
benefit through a service. materials and by designing for ground from the pack still in
recycling at products’ end-of- their bags, making planting
Change of this scale takes time life. We are developing working easier and less likely to damage
and we face many challenges both processes that bring together delicate roots. The packs can
at the innovation phase and in colleagues from different then be easily recycled with
taking new ideas to scale across functions along with our suppliers other household waste.
the business. Our focus in our to reimagine product design and
100%
first year has been on stimulating materials from first principles.
innovation and on testing out new
ideas and approaches. Now we
must take what we have learnt
from these early examples to go recyclable
even further and to create more
positive change.
packaging
We have a long way to go but
we are already seeing results.
What’s more, we generated
annual revenues of £2.3 billion
for the business through sales
of products that are better for
the environment, including
£0.5 billion in sales of our most
innovative eco products.
8Kingfisher Net Positive Report 2013/14
Customer benefits:
• More water
resistant, reducing The Infinite worktop, stylish
water damage and more sustainable
• Lighter and Made from waste wood from
easier to install our stores and end-of-life DIY
• Longer guarantee products, the Infinite worktop
is also 40% lighter than similar
Sustainability products on the market, making
benefits it easier to handle and install
• 100% recycled and reducing breakages. Where
materials, reducing traditional particle boards can be
waste and carbon damaged by steam and water in
emissions the kitchen, Infinite has a wood
• More efficient composite structure that is more
to transport water resistant.
Customer benefits:
• Insulates homes
from noise, heat Métisse insulation helps
and cold customers improve energy
• Highly fire resistant efficiency, while cutting
textile waste
• Can last longer
than mineral The Métisse range offers
wool insulation customers excellent thermal and
acoustic insulation products.
Sustainability These panels are created from
benefits: waste textiles collected by
• Made from recycled Castorama France’s partner,
textiles, using fewer Le Relais, a social enterprise
raw materials and creating jobs for disadvantaged
reducing waste
people. In France, each person
• Supporting social bins an average of 12kg of
enterprise and
clothing every year. Many clothes
25%
job creation
are of low quality, making it hard
to salvage, clean and resell
them. Now 25% of the waste
textiles collected by Le Relais
are pulped and reprocessed
to make Métisse panels, with
the rest either resold, used as
wiping cloths or used in energy
generation. Métisse panels are
on sale in 80 Castorama stores
across France. of the waste textiles collected by Le Relais are
pulped and reprocessed to make Métisse panels
9Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
MORE
COMFORTABLE,
ENERGY EFFICIENT
HOMES
An energy efficient home one-quarter of UK greenhouse
is cheaper to run and more gas emissions, can also play
comfortable to live in. Our an important role in tackling
companies are developing new climate change.
product ranges and services that The launch of new installation
give customers greater control services means our energy
over their home energy use and efficiency offer meets the needs of
enable them to cut their energy both our ‘Do-it-yourself’ customers
bills. We are saving customers and the ‘Do-it-for-me’ customer, as
an estimated £450 million a year well as professional tradesmen.
through sales of our energy-
We also sell renewable energy
saving products and services
products which have enabled
since 2011/123.
customers to generate over
Home energy efficiency projects 37.5 million kWh of green energy.
are an increasingly important We plan to further expand this
commercial opportunity for our part of our customer offer.
businesses and, with home
energy use accounting for over
Customer benefits:
• Up to £305 saving
on home energy bills More intelligent heating with
• Affordable product the iQE range
with a 10-year The iQE Simplicity gas boiler and
guarantee installation service from B&Q
• First boiler to Energy Saving makes energy
carry the Energy efficient heating more convenient
Efficient Buildings and affordable for customers. ‘A’
BSI Kitemark rated for energy efficiency, the
quality standard
boiler has a 10-year guarantee
Sustainability and is the first to carry the
benefits: Energy Efficient Buildings BSI
• ‘A’ rated for Kitemark quality standard. Used
energy efficiency, with the Halo heating control
reduces home system, it enables customers to
energy use and control their heating remotely
carbon emissions and to save up to £305 4 off their
energy bills.
Customer benefits:
£305 B&Q Energy Saving helps
customer savings on
• Reduces home their energy bills customers cut energy
energy use by An efficient, automated home use through home energy
up to 25% with Blyssbox assessments; advice; help
• Customers can Castorama France customers accessing government subsidies;
control their home are cutting their home energy and installation services. iQE
heating, lighting use by up to 25% with Blyss is also available to professional
and alarm, even home automation and heating tradesmen via Screwfix.
when out and about control systems. A central
Sustainability Blyssbox unit is used to control
benefits: home heating, lighting and
alarm systems as well as
• Cuts energy
use and carbon window shutters and gates, with
emissions customers able to operate it
remotely via their smartphone,
25% tablet or computer.
less energy
10
3
Based on the average UK household energy bill.
4
Figure from the Energy Saving Trust June 2014.
http://www.energysavingtrust.org.uk/Heating-and-hot-water/Replacing-your-boilerKingfisher Net Positive Report 2013/14
DIALL LED bulbs, a customer
Best Buy
B&Q UK’s ultra low energy LED
light bulbs have been recognised
as a Best Buy by consumer
organisation Which? with a score
of 92%, the highest of all the
bulbs Which? looked at.
Customer benefits:
• Cuts energy bills
• Lasts for 25 years
• Warm lighting tone
Sustainability benefits:
•U
ses just 10% of the energy
of an incandescent bulb
10%
of the energy use of an
incandescent bulb
Customer benefits:
• One stop shop
with product A simpler approach to saving
information and energy with Eco Prime
access to subsidies
Eco Prime, an initiative from
in one place
Brico Dépôt France, is making
• Easier to plan it easier for customers to
Customer benefits: and implement
plan home energy efficiency
home energy
• Lower heating bills efficiency projects projects and access subsidies.
Kausiflam wood pellet stove Customers benefit from cash
• Eligible for
government range helps customers cut Sustainability back vouchers when purchasing
subsidies bills and carbon emissions benefits: products such as insulation,
Wood pellet stoves, one of our • More energy heating and ventilation systems.
Sustainability lower carbon energy products, efficient homes
benefits: They can visit Brico Dépôt’s
are growing in popularity with refit website, ecoperformance-
• Lower carbon customers. The Kausiflam bricodepot.fr, which helps them
emissions range provides efficient heating calculate the savings they can
that can save customers up to
€650 €650 a year on their heating
make and the subsidies they can
use, identify the best products
potential saving bill while reducing carbon for their job and apply for any
on heating bills emissions. The stoves can be permits they need.
programmed to switch on and
off at set times, which provides
greater functionality and
improves efficiency. They carry
the Green Flame label, which
recognises products that reach
high performance standards
on energy efficiency and
carbon emissions.
The range is competitively
priced and customers can
access government subsidies
via Castorama’s Prime
Energie initiative.
00
11Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
MAKING THE
SUSTAINABLE
CHOICE THE EASIER
CHOICE
We want to make it easier for into our product development
customers to choose more processes, but we are already
sustainable products without seeing successes in areas like
feeling they have to compromise timber sourcing. New services
on style, quality or functionality, can play a role too, like our
or to spend time comparing customer rental and repair offers
products’ eco credentials. that enable customers to use a
Most importantly, customers convenient service that is also
shouldn’t have to pay more better for the environment.
for a greener product.
We are focusing on improving
the sustainability of products
across whole ranges so that
increasingly, customers can be
confident that any product they
buy from us is better for people
and the planet.
Transforming our ranges is a big
job. There is a lot of work to do
behind the scenes to make sure
that sustainability is integrated
Customer benefits:
• 100% responsibly
sourced paper and A better sandpaper at B&Q
timber products with Customers don’t have to
no price premium
consciously choose more
Sustainability sustainable timber when they
benefits: shop at B&Q UK – 100% of its
• Responsibly timber products are responsibly
sourced timber sourced, from proven well-
does not contribute managed sources. Now a new
to deforestation sandpaper range, certified to
• FSC certification FSC standards, is hitting the
has been proven to shelves, meaning that customers
have a positive can be confident that any paper
environmental and products they buy at B&Q UK are
social impact
responsibly sourced too.
100
FSC Trademark ® Forest Stewardship Council, A.C.
All rights reserved. The mark of responsible forestry. FSC-SECR-2022.
12
%
of B&Q UK timber is
responsibly sourcedKingfisher Net Positive Report 2013/14
Customer benefits:
• Easier to create
bee-friendly Gardening that’s better B&Q UK, Europe’s largest
gardens for bees garden centre retailer, is
Sustainability To protect bees we eliminated working with Friends of the
benefits: three pesticides belonging to the Earth to engage customers and
• Eliminates neonicotinoid family (clothianidin, government on the issue of bee
chemicals that are imidacloprid and thiamethoxam) decline. It has introduced the
harmful to bees during 2013 that are thought Royal Horticultural Society’s
to contribute to bee decline. Perfect For Pollinators logo that
3 We introduced the ban ahead
of EU regulation, and across all
makes it easy for customers to
identify plants which can help
pesticides removed
from sale our companies, not just those in support bee populations in
the EU. their own gardens.
Customer benefits:
• Save money by
renting or repairing Rental and repair services
tools rather save customers money
than purchasing Castorama customers in Poland
new ones can save money on their DIY
Sustainability jobs by hiring the tools they need
benefits: at their local store. They can also
get old and faulty tools repaired
• Fewer resources
needed to rather than replacing them with
manufacture new ones. Almost 140,000
new tools repairs and 4,000 rentals were
• Rental tools are carried out last year.
designed to last
longer and be easier
to repair
140,000
repairs
4,000
rentals
13Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
INBUSINESS
Behind the scenes we are transforming how we work,
beginning our journey to becoming a Net Positive
business that can operate with lower costs and build
stronger relationships with our employees, suppliers
and customers.
We’re focused on making Redesigning our business to
sure everyone in our business become restorative is extremely
understands what Net Positive challenging and will take many
is and why it matters, working years. However, by using what
with suppliers to change the way we learn from each project to
we design and manufacture our improve how we work and to
products and source our raw create further positive change
materials, and improving our across our companies, we will FOSTERING A
buildings and transport to reduce continue to make progress CULTURE OF
their environmental impacts and towards our goals. NET POSITIVE
create spaces that are better
for people and the planet. We’re
INNOVATION
also getting involved in our local Already we have some great We have been focused over
communities and partnering with examples of Net Positive the last year at integrating Net
others to tackle sustainability innovation in our products and Positive, working with people
challenges that we can’t solve business. Yet to achieve our across our companies to help
on our own. goals by 2020, we need to them each begin their own Net
accelerate the pace of change. Positive journey. New practical
Innovation always carries a risk tools, such as our closed-loop
of failure but without trying out calculator, will give our people
new ideas we cannot progress. guidance and support to begin
That is why we are starting to making Net Positive innovation
introduce new mechanisms to a reality.
recognise, reward and celebrate
innovation, and looking outside
our business to bring in new
ideas and expertise.
8%
reduction in property
energy intensity from 2010/11
31%
69
cut in transport carbon
emissions at B&Q UK from
%
2006/07
£30 million
saving over three years
through reducing waste
and energy use
170
products with
closed-loop credentials
14
of waste recycledKingfisher Net Positive Report 2013/14
Sustainability New tools help our companies
benefits: close the loop
• Makes it easier One of our priorities is to develop
for our companies to products with closed‑loop
identify opportunities credentials, enabling raw
for closing the loop materials to be continually
Business benefits: reused, repurposed and recycled.
• Can help to cut This is better for the environment
costs associated and can reduce our costs
with raw materials and open up access to new
and waste disposal sources of materials. To help our
companies we developed our
170 closed-loop calculator, a practical
tool to identify those products
products with closed-
loop credentials in our ranges that already have
closed-loop credentials, and
those which are likely candidates
for further improvements. The
tool is being used by our buyers
in product development and by
using it we have already identified
170 products in our ranges with
closed-loop credentials.
Sustainability Making Net Positive part
benefits: of our day
• Supports faster To progress to our goals we
progress to our Net need all our people to work
Positive targets together and make Net Positive
Business benefits: part of their day. We launched
our One Academy Module, a
• Supports employee
bespoke leadership engagement
engagement
programme for our 250 most
250 senior leaders designed to
improve understanding of Net
will be reached
Positive and help leaders to
by the One Academy
programme
stimulate sustainable innovation
in their businesses. We’ve also
added Net Positive-related
targets to the performance Sustainability Net Positive Advisory
objectives for many key benefits: Council launched
employees and introduced • Insight and Many of the issues we’re tackling
training on sustainability to help expertise that will through Net Positive are complex
our people get involved and to help us progress and difficult, and new challenges
support our customers to make towards our Net and opportunities continue
Positive targets to arise. We’ve launched the
sustainable choices too.
Business benefits: Net Positive Advisory Council,
• A source of expert a group of senior external
advice that can help experts in different aspects of
us identify new risks sustainability, who will meet
and opportunities regularly to provide invaluable
guidance, insight and challenge
to help us on our Net Positive
journey. Read a comment from
Dr Sally Uren, Chair of our Net
Positive Advisory Council on
page 19.
15Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
REDESIGNING OUR This collaboration is particularly
important in areas like closed-
SUPPLY CHAINS loop innovation which depend
Our relationship with suppliers is on creating more circular supply
critically important to achieving chains. We are also exploring
our Net Positive goals. As well as new opportunities for local
communicating our sustainability supply chains that can have
requirements to suppliers, we benefits both for the environment
need to work closely together and our business.
to develop new solutions and
unlock opportunities for Net
Positive innovation.
Sustainability
benefits:
Creating a more circular
• Reduces waste
supply chain at Screwfix
and use of virgin
raw materials Screwfix is partnering with
the reverse logistics company
Business benefits: iFORCE, to create a new source
• New revenues of raw materials from what was
and raw materials once considered waste.
streams Old and faulty power tools are
collected from Screwfix stores by
10 iForce. These are broken down
new material streams into component parts to create
from recycled power tools 10 new materials streams. Each
stream is then sold to specific
companies who repurpose the
materials or parts. Some of the
plastics come back into Screwfix
stores as new products. For
example, rubble bags contain at
least 10% of plastic from our old
power tools.
Sustainability
benefits:
• Improved Forest partnerships
biodiversity at Brico Dépôt Spain
• Local communities Through partnerships with
engaged in forest NGOs, Brico Dépôt Spain is
conservation helping to protect local forests
Business benefits: and open up new sources of
• New sources timber products for its stores.
of sustainable Four forest projects have been
timber products launched so far, involving
employees from 11 stores and
11 funded by sales of the Brico
Dépôt reusable raffia carrier
stores involved
in forest projects bag. Each project has a different
focus, including enhancing
biodiversity in a forest damaged
by fire, tree planting and
engaging local school children in
forest conservation. A new range
of sustainable cork products from
one of the forests has been on
sale in Brico Dépôt stores.
16Kingfisher Net Positive Report 2013/14
BETTER STORES AND We’re also tackling carbon Sustainability
emissions from transport and benefits:
TRANSPORT WITH A making progress towards our
Achieving zero waste
• Zero waste
LOWER IMPACT target of zero waste to landfill. to landfill
to landfill at Screwfix
Screwfix has developed a new
We are making energy efficient We have a lot further to go and • 5,400 tonnes of approach to waste management,
design a priority in each new have launched collaboration materials recycled
enabling it to achieve zero
store build. This is better for tools to help our companies learn
Business benefits: waste to landfill and to cut costs.
the environment, reduces our from each other’s successes and
• Lower costs Waste is now sorted at stores
costs and can help create stores speed up the pace of change.
• Less space needed and transported in Screwfix’s
that are more comfortable for own fleet of delivery vehicles
employees and customers. to store waste
back to its distribution centre.
Already we have reduced the
energy intensity of our property 5,400 Here recyclables are sorted
and sold onto recycling firms,
portfolio by 8% since 2010/11, tonnes of materials
recycled generating revenues. General
achieving cost savings waste is compacted and sent
for the business. to an energy-from-waste plant.
The stores no longer need a
traditional waste collection
service, reducing costs and
space needed to store waste.
Sustainability benefits: than regulatory requirements,
• 52% more energy efficient while overnight ventilation
• 100% sustainable timber and mechanical shutters keep
the store at a comfortable
Business benefits: temperature without air-
• Lower energy bills conditioning. Lighting is all LED
• Attractive store design with an auto-dimming system
with large gardens that adjusts intensity as daylight
• Comfortable building for levels change. An integrated
employees and customers energy and water monitoring
system enables the store
52% manager to keep performance at
the optimum level.
more energy efficient
Part of the site has been
set aside for planting with
local species to encourage
A lifesize laboratory biodiversity and the frame of
for eco store design the building is made from 100%
Designed to be a better store for sustainably sourced timber.
customers, employees and the The building design received
planet, the Brico Dépôt store at a ‘very good’ rating from both
Moulins is designed to optimise BREEAM, the international Sustainability
energy use and minimise running sustainable building certification benefits:
costs and environmental impact. scheme, and Bâtiment Basse • Creates a new use Greener fleet delivers at B&Q
Super-insulated walls and a high Consommation, the French for a potent B&Q’s fleet of dual-fuel lorries
performance boiler make the certification scheme for energy greenhouse gas that
that run on diesel and liquid
would otherwise be
site 52% more energy efficient efficient buildings. biomethane are helping the
released directly into
the atmosphere business cut its carbon footprint.
The gas is extracted from landfill
• 31% cut in transport
carbon emissions sites and kept in B&Q’s own
refuelling station, creating a
Business benefits: new reliable source of clean
• Improved cost fuel. Along with other measures,
efficiency like double decker lorries that
• Fewer journeys enable 35% more products to
needed be transported on each journey,
these changes have enabled
35% B&Q to cut carbon emissions
from transport by 31% since
more products
transported on 2006/07.
each journey
17Net Positive Report 2013/14
NET POSITIVE, ONE YEAR ON
INOUR COMPANIES
While our businesses have much in common, they each
serve a different market and customer base, and whilst
many of the sustainability challenges we face are shared
across our markets, there are also many differences. That’s
why each of our companies has its own plan for how it will
contribute towards achieving our Net Positive goals in a
way that is most relevant to its business and its customers.
and a significant contribution to the Sustainable development
Kingfisher Net Positive programme. is a huge challenge for the
We saw further cuts in store energy 21st century and we see a
use, a number of innovative new growing need to reconcile
ideas launched and the completion strong financial performance
of our 20-year quest for 100% with societal wellbeing and
responsibly sourced timber protection of our environment.
and paper. This changing world is a real
opportunity. It encourages
Our priorities in 2014 are to start us to explore new market
cutting excess packaging, improve opportunities, to work differently
B&Q has been a pioneer in supply chain transparency and At Castorama we think that
with our partners and our
responsible retailing for over 20 continue to bring our customers everyone should have the right
suppliers and also, most
years and in 2013 we continued to innovative eco-products at to live better. We want everyone
importantly, with our employees.
make good progress against our affordable prices. to be able to improve their home
original One Planet Home targets without effort, without complexity Véronique Laury
Kevin O’Byrne and without compromise. We CEO, Castorama France
CEO, B&Q UK and Ireland know that feeling better at home
and being happy in life is linked
to the health of our planet and
the wellbeing of others too.
Now we want to go further and Net Positive is aligned with our
accelerate the delivery of our Net business model – to maximise
Positive targets. This year we will efficiency and decrease prices
launch our new sustainability plan. without compromising on quality.
Our plan is about being true to our We are taking firm steps to become
customers, to our people and to more sustainable, progressing
our business. It will form part of towards our targets and making
our long-term business strategy, Net Positive part of how we work.
helping us to accelerate our growth
and to continue to provide the best Alexandre Falke
products, convenience and value CEO, Brico Dépôt France
In the future we think that being
for our customers while creating
a sustainable business will just
positive change for people and
simply mean doing business.
the environment.
We have already made progress in
some key areas, such as achieving Andrew Livingston
zero waste across our stores, CEO, Screwfix
reaching 93% responsible timber
and paper sourcing, and launching
the Screwfix Foundation.
18Kingfisher Net Positive Report 2013/14
INPERSPECTIVE
Dr Sally Uren is Chief Executive at Forum for the Future and
Chair of our Net Positive Advisory Council. Here she shares
her perspective on our progress in year one of Net Positive
and the challenges we still have to address.
experiment; there is also an The second challenge is
acknowledgement that nothing linked. What is the best way to
short of business transformation embed Net Positive in the entire
will deliver the Net Positive organisation, in a way that allows
aspirations. all of Kingfisher’s thousands of
employees to bring the ambition
There has been good progress in
of Net Positive alive for the
some areas, including an increase
millions of people who pass
in sales of products with social and
through Kingfisher stores, and for
environmental benefits, as well as
the communities in and around
helping customers reduce their
Kingfisher’s operations?
energy consumption. However,
overall energy consumption There is then a final challenge.
has slightly increased within the What is the appropriate pace of
property portfolio, as has emissions business transformation that will
There is no doubt Kingfisher from delivery fleets. The challenge allow Kingfisher to respond to a
is blazing a trail. The bold of decoupling environmental impact rapidly changing retail landscape?
commitment to take a restorative from business growth is therefore Taking a look as little as five
approach and become Net very real. years into the future shows a very
Positive is not only shaking up different model for retail; more
This report signals a business alive
Kingfisher’s own business, but the vertical integration, more localised
to such challenges and I would
wider business ecosystem. This and distributed manufacturing;
hope to see progress in the way
in itself is a worthy achievement, demands for ultra-transparency
Kingfisher tackles its environmental
as simply striving to minimise from consumers, who may also be
footprint, prioritising these direct
negative impacts isn’t enough; producers. These are of course all
impact areas, alongside efforts
stocks of every sort of capital, from features of more sustainable retail,
to give its core business offers
natural to social and economic are which is where Net Positive comes
sustainability makeovers.
running perilously low. If we are to in. At its simplest, Net Positive will
get anywhere close to delivering Successful delivery of Net Positive help deliver a sustainable business
a sustainable future, these assets will also require Kingfisher to model for Kingfisher, as well as
need rebuilding – and quickly. navigate two central challenges. requiring Kingfisher to influence
First, what is the right balance the retail system around it, not to
Kingfisher has all the ingredients
between central coordination and just nod to sustainability, but to fully
in place to deliver on Net Positive.
individual Operating Company embrace it.
Governance and accountability
autonomy? Go too far one way
around sustainability issues has Sally Uren
in the direction of central
been strengthened in the last Chief Executive,
coordination, and innovation and
year and this report demonstrates Forum for the Future
ownership will be stifled. Go too
the hunger in the business for and Chair of our
far the other way, and efficiencies
innovation and willingness to Advisory Council
of scale and learning opportunities
will be lost.
19Net Positive Report 2013/14
PROGRESS AGAINST 2020 TARGETS
PERFORMANCE
SUMMARY FOR 2013/14
We have begun to make progress towards our 50 targets
for 2020 but still have much to achieve. We track progress
at our Operating Companies using our Foundations
Questionnaire and calculate a Group score for each target.
All targets are 2020 unless otherwise stated.
TIMBER Tropical deforestation Sustainable lifestyles Eco credentials
None of our products to be Use our global brands and To bring eco-products into the
Net Positive: timber
sourced from materials that are marketing to help shift our mainstream, by achieving 50% of
100% responsibly sourced
linked to tropical deforestation millions of customers towards Group sales from products and
timber and paper in all our
(including tropical hardwood sustainable lifestyles. services with eco credentials.
operations.
products, palm oil and leather).
Progress n/a A Progress Progress
Progress
Products – timber Responsible marketing Range sustainability rating
100% responsibly sourced timber Improving forests All our customer communications To enhance the eco credentials
and paper in our products. Every Operating Company and marketing to be in line with of all our products by improving
to have at least one forest our guidelines on responsible the sustainability rating of every
Progress or woodland enhancement brand management and product range.
initiative that makes a substantial marketing 2016/17.
Packaging – timber Progress
quantifiable step towards the
100% responsibly sourced timber Group aspiration of creating Progress
Sustainability of own-brand
and paper in our packaging. more forest than we use. Total carbon footprint Demonstrate leadership on
Progress Progress 25% reduction in our absolute eco innovation across our Group
carbon footprint from a 2010/11 own brands.
Catalogues and goods not for
ENERGY baseline (tonnes CO2e). Progress
resale – timber
100% responsibly sourced timber Net Positive: customer Progress
energy Closed-loop supply chains
and paper in goods not for resale.
38 TWh of energy saved Property carbon intensity Ten closed loop supply chains.
Progress for customers across our 50% reduction in the carbon Progress
international businesses. intensity (CO2e/m2) of our
Construction – timber property portfolio from a Alternative services
100% responsibly sourced timber Progress 2010/11 baseline.
and paper in materials procured Explore and trial alternative
for construction and fit-out. Net Positive: own energy Progress business models such as product
45% reduction in the energy hire and repair, which encourage
Progress intensity (kWh/m2) of our INNOVATION a perpetual reuse of products by
property portfolio from a Net Positive: closed-loop 2016/17.
Strategic sourcing
2010/11 baseline. products
Demonstrate resilient supply Progress
chain relationships that can Progress 1,000 Kingfisher products with
guarantee the future provision closed-loop credentials. Learning stores
of responsibly sourced timber Energy-using products Every operating company to
All energy-using products to Progress
across the Group’s major develop at least three ‘Learning
timber categories. meet ‘best practice’ standards Eco-product innovation Stores’ and to have delivered,
on energy efficiency. To be at the forefront of or confirmed, the site for one
Progress
Progress n/aB sustainable product innovation, ‘Eco Store’ – a store that
with 10% of Group sales from champions low carbon and
the most innovative eco-products sustainability innovation.
and services.
Progress
Progress
20Kingfisher Net Positive Report 2013/14
Sustainability accounting Equality and diversity SRI indexes and CR ratings Chemicals
Calculate and account for To be recognised as a ‘best Kingfisher to maintain its None of our own-brand or
the impact and value of our practice’ company for equality leadership position in key exclusive brand products
sustainability strategy to the and diversity within our local SRI indexes and CR ratings. will contain the chemicals of
business and communicate this retail markets. concern we have committed
to investors and employees by Progress to remove.
2016/17. Progress
Ethical business conduct Progress n/aD
Progress Employee H&S Maintain the highest standards
Achieve a 20% reduction in the of ethical business conduct Packaging
COMMUNITIES employee lost-time accident rate through ongoing implementation Packaging on all own-brand
from a 2010/11 baseline. of and compliance with the and exclusive brand products to
Net Positive: communities
Group Governance Manual and conform to Kingfisher packaging
4,000 community projects Progress Code of Conduct. sustainability standards.
completed by our people
that deliver ‘Better Homes, Customer and contractor H&S Progress Progress
Better Lives’. Develop a Group-wide accident
reporting framework for Construction-waste
Progress ENVIRONMENT 90% of construction waste
customers and onsite contractors
Waste recycled in new build and
Skills-sharing online and set a reduction target.
Achieve zero waste to landfill. major refurbishments.
Promote sharing of skills and Progress
‘know-how’ in local communities Progress Progress
by building online community Employee surveys
Direct transport impacts Construction-biodiversity
platforms in the UK and France Improve our employee
Achieve a 20% reduction in Enhance biodiversity on
to help link people. engagement by extending
CO2 emissions from our direct new-build projects, major
engagement surveys to cover
Progress transport impacts from a refurbishments and
all employees.
2010/11 baseline. existing stores.
EMPLOYEES Progress Progress Progress
Performance management
Integrate Net Positive into the SUPPLIERS & PARTNERS Indirect transport impacts Peat elimination
performance management Supplier ethical assessment Demonstrate a comprehensive All ‘bagged’ growing media
systems for all relevant All suppliers of Kingfisher programme of action to reduce sold in the UK to be from
employees. own brand/exclusive brand the overall carbon footprint of sustainable sources, ahead of
products will meet or exceed our indirect transport impacts. the government 2020 deadline.
Progress our ethical and environmental
Progress Progress
Senior management training standards.
To have a development Progress Green travel
programme on Net Positive Demonstrate proactive green
for the top 250 managers from Goods Not For Resale (GNFR) travel initiatives to minimise the
around the Group. Key GNFR contracts will meet environmental impact of travel
or exceed our sustainability by employees and customers.
Progress
standards.
Progress
Eco-product training Progress
Every employee has the right Own water footprint
skills to help customers lead Supplier footprint To understand the water
sustainable lifestyles. To define and measure the footprint of our own operations.
carbon and water footprint of our
Progress Progress
value chain and to set a carbon
Net Positive engagement reduction target. Water-using products
Net Positive engagement and Progress All water-using products to meet
development programmes to ‘best practice’ standards on
motivate all our employees to water efficiency.
become more sustainable at
work and at home. Progress n/aC
Progress
A
We do not yet have complete data to assess progress towards this target.
B
Score not allocated. Kingfisher guidelines to be developed.
C
Score not allocated. Kingfisher guidelines to be developed.
D
Score not allocated. Work in progress to update the Kingfisher Chemical Action List.
21
The process to assess progress against our targets is within KPMG’s limited assurance scope.
Read how we calculate the score for our progress
against targets on page 61.You can also read
